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Property prices in Tokyo have reached historic highs in 2025, with new condominiums in central Tokyo averaging ¥1,100,000 to ¥1,500,000 per square meter. The Tokyo real estate market continues to attract significant international investment, driven by stable economic conditions, low interest rates, and strong rental demand in key districts.
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As of September 2025, Tokyo property prices average ¥1,100,000-¥1,500,000 per sqm for new apartments in central wards and ¥800,000-¥1,000,000 per sqm for used properties.
The market shows steady growth with 5-6% annual increases forecasted, making Tokyo more affordable than London or New York while offering competitive rental yields of 3-4.4%.
| Property Type | Central Tokyo Price/Sqm | Suburban Price/Sqm | Typical 70sqm Unit Cost |
|---|---|---|---|
| New Apartment | ¥1,100,000-¥1,500,000 | ¥580,000-¥800,000 | ¥77M-¥105M |
| Used Apartment | ¥800,000-¥1,000,000 | ¥400,000-¥600,000 | ¥56M-¥70M |
| Detached House | ¥78.59M average | ¥40M-¥60M average | ¥50M-¥80M |
| Luxury Condo | ¥1,400,000-¥12,000,000 | ¥800,000-¥2,000,000 | ¥98M-¥840M |
| Land Purchase | ¥263,000 (Greater Tokyo) | ¥150,000-¥250,000 | N/A |
What's the current average price per square meter in Tokyo?
As of September 2025, Tokyo property prices show significant variation between central and suburban areas.
New condominiums in central Tokyo's 23 wards cost between ¥1,100,000 and ¥1,500,000 per square meter. Used apartments in the same areas range from ¥800,000 to ¥1,000,000 per square meter. These prices represent the premium districts where most international buyers focus their attention.
Suburban Tokyo properties offer more affordable options, with new apartments priced at ¥580,000 to ¥800,000 per square meter and used properties at ¥400,000 to ¥600,000 per square meter. The overall average price for luxury and new builds in Tokyo's 23 wards reaches ¥2,015,000 per square meter, with an average unit price of ¥130.64 million.
Land transactions in Greater Tokyo average ¥263,000 per square meter, providing a baseline for those considering ground-up development projects.
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How do prices differ between apartments, houses, and luxury properties?
Property type significantly impacts pricing in Tokyo's real estate market.
Detached new houses average ¥78.59 million for properties with 50-100 square meter lots as of February 2025. These standalone properties typically offer more space but require larger initial investments compared to apartments. Houses generally provide better value per square meter in suburban areas but command premium prices in central Tokyo.
Luxury condominiums in prestigious areas like Minato ward, Roppongi, and Toranomon Hills range from ¥1,400,000 to an extraordinary ¥12,000,000 per square meter. Ultra-prime properties have recorded sales exceeding ¥500 million, with prime condos in central wards selling for ¥110-150 million.
New apartments cost 20-40% more than used properties of similar size and location. The luxury segment drives average prices significantly higher, with brand-new premium units commanding the highest premiums in the market.
Standard apartment buildings offer the most accessible entry point for most buyers, while luxury properties cater to high-net-worth individuals seeking prestige locations and premium amenities.
Which neighborhoods are the most expensive, budget-friendly, and up-and-coming?
| Category | Neighborhoods | Price Range/Characteristics |
|---|---|---|
| Most Expensive | Minato (Akasaka, Azabu, Roppongi), Chiyoda, Chuo, Meguro | ¥1,400,000-¥12,000,000/sqm |
| Budget-Friendly | Adachi, Katsushika, Itabashi, Edogawa, Nerima | ¥50,000-¥75,000 monthly rent for 1K |
| Up-and-Coming | Nakano, Koenji, Sumida, Toyosu | Rapid price appreciation, future infrastructure |
| Prime Investment | Shibuya, Shinjuku, Central Tokyo | Strong rental demand, high resale potential |
| Value Areas | Outer Tokyo wards | Lower entry costs, steady rental income |
Can you give me examples of actual purchase prices for different property sizes?
Recent transaction data reveals specific pricing patterns across different property sizes in Tokyo.
Record luxury transactions have exceeded ¥500 million, with prime condominiums in central wards selling for ¥110-150 million. A typical 70-80 square meter apartment in premium areas costs ¥110-150 million, while similar units in suburban locations range from ¥50-70 million.
Smaller suburban units, such as one-bedroom apartments, sell for ¥28-35 million. Studio and 1K apartments command higher prices per square meter but lower total costs, making them attractive for first-time buyers and investors targeting rental markets.
For rental reference, a 70 square meter 2LDK apartment in Shibuya commands ¥1.05 million monthly rent, indicating strong income potential for property investors. These examples demonstrate the wide price range available depending on location, size, and property type.
Premium new constructions in central Tokyo consistently outperform suburban alternatives in both purchase price and rental yield potential.
How does the price per square meter change depending on property surface area?
Property size creates interesting pricing dynamics in Tokyo's real estate market.
Smaller units like studios and 1K apartments typically show higher prices per square meter but lower total purchase costs. This premium reflects strong demand from single professionals and investors targeting the rental market. The compact living trend in Tokyo supports sustained demand for efficiently designed smaller spaces.
Larger luxury units often display lower prices per square meter except in premium buildings where size commands additional premiums. Size discounts become more apparent outside premium locations, where buyers can access more space at proportionally lower per-square-meter costs.
Brand-new premium properties with smaller footprints maintain higher per-square-meter pricing due to location advantages and modern amenities. The relationship between size and pricing varies significantly based on neighborhood prestige and building quality.
Buyers seeking value often find better per-square-meter deals in larger units located in emerging neighborhoods or slightly older buildings with recent renovations.
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What are the total costs of buying, including fees, taxes, and other expenses?
Property purchase costs in Tokyo extend beyond the listed price by approximately 5-8% of the purchase value.
Agent commission typically costs 3% plus ¥60,000 (plus tax) of the purchase price. Registration fees, stamp duty, and acquisition tax add substantial amounts to the total investment. For an ¥80 million property, acquisition tax alone costs approximately ¥1.08 million.
Additional expenses include building management fees, reserve funds for maintenance, legal fees, and notary costs. Annual property taxes include fixed asset tax and urban planning tax, which are included in closing adjustments between buyer and seller.
First-time buyers should budget for these additional costs when calculating their total investment requirements. Professional legal and tax advice becomes essential for understanding the full financial commitment, especially for foreign buyers navigating Japanese property law.
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How much would a typical mortgage cost for a property in Tokyo today?
Tokyo mortgage costs in September 2025 reflect current interest rate conditions and lending requirements.
Fixed-rate mortgages (5-year) show a median rate of 4.11%, while variable rates range from 1.65% to 2.75% at major banks. Floating rates start at 1.23%, with 10-year fixed rates beginning at 2.20%. Most lenders require 10-20% down payments and stable income verification.
For an ¥80 million loan at 1.7% fixed rate over 35 years, monthly payments approximate ¥240,000-¥255,000 for principal and interest only. Loan fees typically cost 2.2% of the loan amount (Plan A) or a flat ¥22,000 fee (Plan B) upfront.
Foreign buyers must demonstrate residency status and stable income sources. Japanese banks offer competitive rates but maintain strict qualification requirements. Professional mortgage consultation helps navigate the application process and secure optimal terms.
Current rates remain favorable compared to many international markets, supporting continued investment activity in Tokyo real estate.
How have prices changed compared to five years ago and one year ago?
Tokyo property prices show consistent upward momentum over both short and medium-term periods.
Over the past year, prices increased 5-10% in central Tokyo areas within the 23 wards, with citywide land values rising 8.1%. This growth reflects continued demand from both domestic and international buyers, supported by economic stability and infrastructure development.
The five-year trend reveals dramatic appreciation, with apartment prices climbing 37-40% from 2019 to 2025. The luxury segment outpaced the broader market significantly, driven by limited supply and strong demand from high-net-worth buyers.
Growth patterns show moderation in 2025, with forecasts indicating 5-6% annual increases compared to 8% growth in 2024. This "soft landing" suggests market maturation while maintaining upward trajectory.
These trends position Tokyo as a stable long-term investment market with consistent appreciation potential, though at more sustainable rates than the rapid growth of recent years.
What are the forecasts for property prices in Tokyo over the next one, five, and ten years?
Tokyo property market forecasts indicate continued growth at moderated rates across different time horizons.
The next year (2026) shows projected growth of 5-6% for Tokyo properties, representing a cooling from the 8% growth rate experienced in 2024. This adjustment reflects market maturation and economic normalization following recent rapid appreciation.
Five-year projections (2025-2030) anticipate a "soft landing" scenario with annual growth rates of 3-5%. This steady appreciation provides sustainable returns while avoiding speculative bubble conditions. Market fundamentals support continued demand from domestic buyers and international investors.
Ten-year outlook (2025-2035) suggests central Tokyo will maintain strength due to infrastructure development, international business presence, and limited land supply. Suburban and rural areas may experience weaker performance due to demographic challenges and population concentration trends.
These forecasts support long-term investment strategies while highlighting the importance of location selection within Tokyo's diverse market landscape.
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What are the smartest investment choices right now: buying to live, rent out, or resell?
Investment strategy selection depends on individual goals and market conditions in September 2025.
1. **Buy-to-live strategies** offer excellent value for buyers seeking stable, long-term housing security. Owner-occupiers benefit from mortgage interest deductions and avoid rental market volatility.2. **Long-term rental investments** provide steady income with Tokyo's citywide average gross yield of 4.2%. Older properties and suburban locations often generate higher yields while requiring lower initial investment.3. **Short-term rental operations** show strong demand in premium central locations but face tight regulations and volatile returns. Success requires careful property selection and professional management.4. **Buy-to-resell strategies** carry higher risk due to slowing appreciation rates. Speculative "flipping" becomes less attractive as growth moderates, though opportunities exist in up-and-coming districts.5. **Mixed-use approaches** combining owner occupancy with rental income (renting rooms or separate units) maximize property utilization.Current market conditions favor buy-to-rent strategies for long-term stability and owner-occupancy for lifestyle security over speculative resale investments.
How does Tokyo's property market compare with other major cities like New York, London, or Paris?
| City | Condo Price/Sqm (¥) | 3BR Monthly Rent (¥) | Rental Yield (%) | Property Tax Level |
|---|---|---|---|---|
| Tokyo | ¥1,150,000 | ¥390,000 | 3.0-4.4 | Low |
| London | ¥2,634,750 | ¥803,000 | 3.5-4.5 | High |
| New York | ¥2,558,500 | ¥1,242,000 | 3.0-4.0 | Very High |
| Paris | ¥1,957,700 | ¥503,000 | 2.5-3.0 | Moderate |
Tokyo demonstrates significant affordability advantages compared to other global financial centers while maintaining competitive investment returns and regulatory stability.
What are the best value-for-money options today for living or investment?
Value opportunities in Tokyo's property market vary significantly by investment objective and budget level.
Central wards like Shibuya, Shinjuku, and Chuo offer highest growth potential with premium prices justified by robust demand and strong resale prospects. These areas provide the best combination of capital appreciation and rental income potential for serious investors.
Up-and-coming districts including Nakano, Koenji, Toyosu, and Sumida present lower entry costs with rapid price appreciation potential. These neighborhoods offer diversified communities and improving infrastructure, making them attractive for both residents and investors.
Outer wards such as Nerima, Edogawa, and Adachi provide budget-friendly options with steady rental income opportunities. These areas suit cost-conscious buyers seeking reliable returns without premium location costs.
Used apartments aged 5-15 years deliver optimal price-performance ratios, especially when lightly renovated. These properties avoid new construction premiums while offering modern amenities and financing availability.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Tokyo's property market in September 2025 offers compelling opportunities for both residents and investors, with prices stabilizing after rapid growth while maintaining upward momentum.
The combination of affordability compared to other global cities, competitive rental yields, and stable regulatory environment positions Tokyo as an attractive long-term real estate investment destination.
Sources
- BambooRoutes - Apartment Costs Japan
- BambooRoutes - Average Tokyo Apartment Price
- E-Housing - Tokyo Cost of Living
- BambooRoutes - Tokyo Apartment Rent
- Belonging Japan - Tokyo Apartment Prices
- Statista - Japan Land Transaction Prices
- Toshihiko Yamamoto - Tokyo Billionaire Real Estate
- Nikkei Asia - Tokyo House Prices
- E-Housing - Tokyo Real Estate Investment
- Luxury Japan - Wealthiest Tokyo Neighborhoods